Retail Hire Purchase Finance

This is an instalment based method of buying a non vehicle product like, furniture, appliances, camping equipment, bikes, and car accessories, and paying it off over time. Once this hire purchase contract has been paid, the ownership of the chattels passes to the purchaser.

Minimum loan size is $295 for terms ranging from 3 months to 4 years. Payment Protection Insurance can be added to the account.

There are 5 different types of hire purchase products:

1. Interest Bearing:

A retailer introducing this type of customer can potentially earn a commission directly related to the profitability of the loan.

1. Standard Interest Bearing: the purchaser pays interest on the account along with their monthly payments.
2. Deferred Interest Bearing: the purchaser pays interest with the first payment deferred for a period, say 3 months. Payments are then due monthly thereafter.

2. Interest Free:

A retailer using this product will pay the finance costs (interest) on behalf of the customer. This acts similar to a discount for cash.

1. Standard Interest Free: a common product where the purchase does not pay interest and pays their account off in monthly instalments.
2. Deferred Interest Free: the purchaser, pays no interest with the first payment deferred for an agreed period. Payments are then due monthly thereafter. E.g. 3 months deferred then pay the loan off in 12 equal instalments.
3. Lump Sum Deferred Interest Free: the entire loan is payable in a lump sum at the end of the agreed term. Finance Now has the ability to enable multiple lump sum instalment payments within a single loan, e.g. 1/3 in 3 months, 1/3 in 6 months and 1/3 in 9 months.

FNL is open Monday to Friday 8.00 am to 6.00 pm, Saturday 9.00 am to 5.00 pm, Sunday 10.00 am to 4.00 pm. To contact Finance Now simply call 0508 FIN NOW, that’s 0508 346 669 or e-mail lending@financenow.co.nz

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